All of the following are true regarding the price elasticity of demand except which one?
A)It is measured in percentage changes.
B)It measures how much the quantity demanded changes in response to a change in price.
C)It measures the movement along the demand curve in response to a change in price.
D)It measures how much the demand curve shifts in response to a change in price.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. It is measured in percentage changes (A) and represented as a movement along the demand curve (C). However, it does not measure how the demand curve shifts in response to a change in price (D).

All of the Following Are True Regarding the Price Elasticity